36 added to U.S. Entity list for illicit export activities

By Chris Gillis|Friday, December 13, 2013

The U.S. Commerce Department's Bureau of Industry and Security has added 36 companies and individuals to the Entity List for “engaging in actions contrary to the national security or foreign policy interests” of the United States.
Investigations conducted by BIS's Office of Export Enforcement identified those companies and individuals who engaged in illicit shipments of U.S-origin goods to Iran and prohibited end-users in China.
"We are committed to using every available method to prevent illicit diversions from harming our national security," said Undersecretary of Commerce Eric L. Hirschhorn, in a statement. "This is an example of how BIS's unique authorities and compliance tools can help exporters safeguard their transactions."
The Entity List provides public notice of entities that have engaged in activities that could result in an increased risk of the diversion of exported, re-exported or transferred items to weapons of mass destruction programs; entities sanctioned by the State Department; and companies that have acted contrary to U.S. national security and foreign policy interests. Parties being added to the Entity List are located in Armenia, Canada, China, Germany, Greece, Hong Kong, Iran, Malaysia, Thailand, Turkey, and the United Arab Emirates, the agency said.
The first group of entities added — namely Anvik Technologies Sdn. Bhd., Montana Advanced Engineering Sdn Bhd., Albin Technologies Sdn Bhd., Hansen Technologies Limited, and Babak Jafarpour — were involved in purchasing items subject to the Export Administration Regulations (EAR) from U.S. companies and having the items shipped via virtual offices and freight forwarders in Hong Kong and Malaysia to Iran in violation of the Treasury Department’s Office of Foreign Assets Control (OFAC) regulations and the EAR. The items purchased included various types of electronics, and navigation and avionics equipment.
The second group of entities — Saeed Talebi, Satco, Satco Corp., Satco GmbH, Kadin Satco FZE, AAG Makina, and Murat Peker — operated as parts of a procurement ring coordinating the sale and supply of items to Iran in violation of OFAC regulations and the EAR, the agency said. BIS explained that Saeed Talebi purchased items from U.S. companies and shipped them to Iran via Germany and Turkey. He established businesses in the U.A.E., Germany, and Canada to facilitate his scheme, while Murat Peker, an employee of AAG Makina in Turkey, worked with Talebi to facilitate shipments by providing false information to the U.S. government concerning the final destination of the shipments.
The third group of entities — Aeolian Airlines, Seyyed Abdolreza Mousavi, Eurocenter Havacilik Dis Ticaret Limited Sirketi, Kral Aviation Services Ltd., Kral Aviaton, Asian Aviation Logistics Co., Gulnihal Yegane, Pioneer Logistics, Havacilik TurizmYoonetim Danismanlik Ithalat Thracat San. Tic. Ltd., Sti, Thrust Aviation FZE, Aerostar Asset Management FZC, Avistar Havacilik Bilisim Turizm Insaat Sanayi Ve Ticaret Limited Sirketi, Mostafa Oveici, Vertir Airlines, Sawa Air Aviation FZCO, Avia Trust, Khalidee Boolay Surinanda, Kosol Surinanda, Ergin Turker, and Glasgow International Trading — engaged in a procurement scheme that directly supported the operation of Iranian airline Mahan Air. Mahan Air has been on BIS's Denied Persons List since 2008 and was designated as a Specially Designated Global Terrorist by OFAC in 2011.
The fourth group of entities — which includes Beijing Tianhua, Tenfine Ltd., Longtek Co., FOC (HK) Technology Co., and Comsum Technologies (Group) Ltd. — acted as procurement agents for a listed entity, Beijing University of Aeronautics and Astronautics (BUAA), which was added to the Entity List in May 2001 due to its involvement in rocket system and unmanned air vehicles activities.
In addition to listing 36 new entities, BIS removed one person, located in Russia, ECO-MED-SM Ltd., from the Entity List based on a removal request. “The decision to remove this person took into account this person's cooperation with the U.S. government, as well as this person's assurances of future compliance with the EAR,” BIS said.